Inventory Costing is the process of assigning a cost to items in a business’s inventory. It’s an important part of managing any business where products are bought and sold, as it helps ensure that profit margins are maintained. The most common methods for costing inventory include First-In-First-Out (FIFO), Last-In-First-Out (LIFO) and Weighted Average – all of which have different advantages and disadvantages that must be carefully considered. Inventory Costing is an essential practice for any business looking to optimize its profitability and remain competitive in a dynamic marketplace.